In a tumultuous economic landscape marked by the cost of living crisis and rising business costs, certain sectors in the UK have displayed resilience and growth, according to analysis by the money.co.uk business bank accounts team, a UK-based price comparison website.
Property
The property sector emerged as the top performer, experiencing a significant growth of 2.78% from 2022 to 2023. This growth, evidenced by an increase from 110,710 to 113,785 businesses, may be attributed to robust demand in the property market as the economy recovers from the COVID-19 pandemic. Despite challenges in the rental market, forecasts suggest resilience, with some regions projected to see average rents rise by 11.7% by 2027, indicating a promising long-term outlook.
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Health
The health sector witnessed substantial growth of 2.75%, reflecting its fundamental importance in society. The increase from 106,175 to 109,095 businesses underscores the rising demand for private healthcare services amid challenges faced by the NHS, such as staff shortages. Private healthcare providers have seen increased popularity as individuals seek alternatives to alleviate lengthy waiting times.
Arts
Experiencing a growth of 2.01%, the arts, entertainment, recreation, and other services sectors demonstrated resilience in the face of pandemic-induced setbacks. The industry, which suffered during the pandemic, rebounded strongly, with a notable increase from 180,790 to 184,420 businesses. A Department for Culture, Media and Sport (DCMS) survey highlighted the sector's significant role in the economy, with 9 in 10 people engaging with the arts in some form in 2023.
Redundancy
Alternatively, a measure of resilience in industries can be observed by identifying those with the lowest redundancy rates. Below are the sectors that recorded the least number of redundancies between November 2023 and January 2024.
Professional, scientific & technical
With only 6,000 redundancies, this sector underscores the essential nature of roles such as legal services, accounting, engineering, and research and development, which maintain demand even in challenging economic climates.
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By GlobalDataHuman health & social work
Despite double the job losses compared to professional, scientific and technical activities, totalling 12,000 redundancies, the critical nature of health and social services contributes to low redundancy rates, particularly during crises like the cost of living crisis and the COVID-19 pandemic.
Wholesale, retail & repair of motor vehicles
Ranking third with a redundancy rate of 4.2%, this sector, encompassing various activities related to motor vehicles, plays a vital role in employment and in sustaining the broader economy's functionality.
Methodology
The analysis used data from the Office for National Statistics from 2023 to identify industries experiencing the most significant increases in the number of companies and to assess redundancy rates across different sectors.
